Sun Pharma Q1 net jumps 3-fold; US, India sales grow

Sun Pharmaceutical today reported more than 3-fold jump in net profit to Rs 2,034 crore for the quarter ended June 30, mainly on account of robust sales in the United States and India.
The drug major had posted a net profit of Rs 555.90 crore last year, as it was adversely impacted by one-time items as well as exceptional charges of Rs 685 crore, the company said in a statement.
The company's total sales rose by 23 per cent to Rs 8,007 crore during the April-June quarter.
India sales, which account for 23 per cent of total sales, were up by 8 per cent at Rs 1,854 crore over the first quarter of last year.

The US finished dosage sales, accounting for 51 per cent of total sales, jumped 25 per cent at USD 609 million. US sales include the benefit of the 180-day exclusivity for Imatinib which commenced from February 1, 2016.
Emerging markets sales rose by 16 per cent to USD 154 million during the April-June quarter of current fiscal. Sales in rest of world (excluding US and emerging markets) stood at USD 84 million, a de-growth of 7.3 per cent over year-ago period.

"We continue to accrue synergies from the Ranbaxy acquisition while simultaneously investing in building the specialty business in the US," said Dilip Shanghvi, the Managing Director of Sun Pharmaceutical Industries.

Shanghvi said during the quarter, the company progressed further in specialty initiatives by announcing positive results from the Phase-3 trials of Tildrakizumab as well as approval of BromSite in the US.
"In continuation of our focus on expanding the specialty footprint, post the close of the quarter, we entered into a licensing agreement with Almirall S.A (Spain), a leading European dermatology company, for the development and commercialization of Tildrakizumab for psoriasis in Europe," he added.
During the quarter, the pharma company made R&D investments of Rs 531 crore or 6.6 per cent of sales compared to Rs 511 crore or 7.8 per cent of sales in the same period last fiscal.

This R&D expenditure includes investments on account of funding the clinical development of our specialty pipeline including Tildrakizumab, it said.
"Sale of branded formulations in India for Q1 FY17 was Rs 1,854 crore, up 8 per cent despite the combined effect of multiple regulatory changes which adversely impacted overall industry growth," the statement said.
Sales in the US for the quarter were boosted primarily due to the benefit of the 180-day exclusivity for Imatinib which commenced from February 1.
At the same time, Taro posted June quarter sales of USD 234 million, up 9 per cent over last year period. Taro's net profit for the first quarter was USD 110 million, up by 6 per cent YoY.